Power bill warning

PEOPLE have been urged to shop around for energy deals amid expectations of an increase in bills.

The latest report from Australian Energy Market Operator, which runs the electricity grid, shows residents are likely to see a $100 increase in electricity bills, with wholesale prices doubling in the past 12 months.

Financial comparison website Finder says thousands of households will cop a hefty bill come July 1 – regardless of the election outcome.

Finder energy expert Mariam Gabaji urged consumers to shop around for energy plans before this date.

“You have two different types of energy plans on the market: those that offer fixed rates for a certain period (such as 12 months) or others that have variable rates,” she said.

“If you don’t like switching electricity plans often in search of the cheapest variable rates, you’re likely to benefit from a fixed-rate plan instead.”

Joel Gibson from One Big Switch – a consumer power network – said residents would juggle power price increases with skyrocketing inflation.

“This is just the beginning, unfortunately. Retailers are being very cagey about price hikes but they’re coming, and different retailers will be impacted in different ways depending on where they source their power,” he said.

“We want anyone who has received a price hike letter to send it to us so we can paint a fuller picture and tell Australians where the biggest price hikes are.

“If you’re not prepared to shop around and switch this year, your power bill could end up ballooning by hundreds of dollars, on top of groceries, petrol and mortgage increases.”

Australian Bureau of Statistics figures show electricity prices went up 3.5 per cent over the year, contributing to an overall inflation figure of 5.1 per cent.

The looming power bill increase follows heated political debate surrounding rising consumer prices and cost-ofliving pressures.

Both Scott Morrison and Anthony Albanese have promised to keep power prices low after annual inflation rose to its highest level in two decades.

Labor has committed $20bn for a “Rewiring the Nation” policy, which it promised would follow the AEMO blueprint for transmission projects, commonly known as the Integrated System Plan.

Prime Minister Scott Morrison pointed to an 8 per cent fall in electricity prices over the past two years, while claiming Labor’s energy policy would drive up prices.

He has previously said his government has delivered “affordable, reliable energy”.